Donald and Penne (1987), debtors or accounts receivable in a firm are claims held against
others in the operating circle. Trade debtors are further classified into trade debtors and nontrade
debtors. The amount which is owed by customers for goods and services sold in the
course of carrying on a business is termed trade debtors while on the other hand any amount
owed by customers arising from a variety of transitions that are oral or written promises to
pay other than goods at a later date is called non-trade debtors.